Professional Documents
Culture Documents
PUBLIC UTILITIES
Contract of Transportation person
obligates himself to transport persons or
property from one place to another for a
consideration.
2 KINDS:
1. CARRIAGE OF PASSENGERS
Parties: common carrier & passenger
(carried gratuitously or not)
Perfecti!:
" c!tract t carr# (agreement to
carry the passenger at some future
date) consensual contract and
perfected by mere consent
* AIRCRAT perfected e!en "ithout
issuance of tic#et as long as there "as
already meeting of minds "ith respect
to the sub$ect matter and consideration
" c!tract f carria$e
real contract% not until the facilities of
the carrier are actually used can the
carrier be said to ha!e assumed the
obligation of the carrier% perfected by
actual use.
* AIRCRAT perfected if it "as
established that the passenger had
chec#ed in at the departure counter&
passed through customs and
immigration& boarded the shuttle bus
and proceeded to the ramp of the
aircraft and baggage already loaded to
the aircraft.
* 'ublic (tility )us or *eepneys once it
stops it is in e+ect ma#ing a continuous
o+er to riders% perfected "hen
passenger is already attempting to
board the !ehicle
* TRAI,- perfected "hen a person.
a. purchased a tic#et/ possess
su0cient fare "ith "hich to pay
for his passage
b. presented himself at the
proper place and in a proper
manner to be transported
c. has a bona 1de intention to
use facilities of the carrier
2. CARRIAGE OF GOODS
Parties: shipper & carrier
Perfecti!:
2 contract to carry goods consensual
2 contract of carriage 3 act of deli!ery of
goods ( goods are unconditionally
placed in the possession and control of
the carrier and upon their receipt by the
carrier for transportation)
CARRIER:
C%%! carriers &CC' &1()2'
persons& corporations& 1rms or
associations engaged in the
business of carrying or
transporting passengers or
goods or both& by land& "ater&
or air& for compensation& o+ering their ser!ices to the public. (,4T the means of
transportation)
one that holds itself out as ready to engage in the transportation of goods for hire
as a public employment and not as a casual occupation.
Tests for determining 54, a party is a common carrier of goods.
6. 7e must be engaged in the business of carrying goods for others as a public
employment& and must hold himself out as ready to engage in the transportation
of goods for persons generally as a business and not as a casual occupation.
8. 7e must underta#e to carry good of the #ind to "hich his business is con1ned.
9. he must underta#e to carry by the method by "hich his business is conducted and
o!er his established roads
:. transportation must be for hire.
Characteristics of Common carriers (CC).
no distinction bet"een one "hose principal business is the transportation of
persons/goods and one "ho does such as an ancillary business
still a CC e!en if ser!ices o+ered to a limited clientele
pipeline operators are CCs not necessarily motor !ehicles
C*ARTER PART+:
3 contract by "hich an entire ship or some principal part thereof is let by the o"ner to
another person for a speci1ed time or use.
2 t#,es:
6. Contract of a+reightment
in!ol!es the use of shipping space on !essels leased by the o"ner in part or as a "hole& to
carry goods for another
3 CC ; obser!e e<traordinary diligence% in case of loss& deterioration or destruction of goods
of goods& CCs are presumed to be at fault or ha!e acted negligently
8. Charter by demise/ )areboat Charter
"hole !essel is let to the charterer "ith a transfer to him of its entire command and
possession and conse=uent control o!er its na!igation including the master and the cre"
"ho are his ser!ants.
3 charter includes both !essel and cre">CC becomes pri!ate carrier ('C) insofar as that
particular !oyage is concerned
3 if 'C3 ordinary diligence in the carriage of goods "ill su0ce
3 'C ; underta#ing is a single transaction& not a part of the general business or occupation&
although in!ol!ing the carriage of goods for a fee% ,4 presumption of negligence applies
"hosoe!er alleges damage to or deterioration of the goods carried has the burden of
pro!ing that the cause "as the negligence of the carrier.
CCs -. T.a$e/ Arrastre a!0 Ste-e0ri!$
To"age3 a !essel is hired to bring another !essel to another place
e.g. a tugboat may be hired by CC to bring the !essel to a port (operator of tugboat not CC)
Arrastre operator?s functions has nothing to do "ith the trade and business of na!igation
nor to the use or operation of !essels. -er!ices are not maritime.
-te!edoring3 in!ol!es the loading and unloading of coast"ise !essels calling at the port.
222 Common carriers are public utilities& impressed "ith public interest and concern
sub$ect to regulation by the state.
REGISTERED OWNER RULE
3 the registered o"ner of a !ehicle is liable from any damage caused by the
negligent operation of the !ehicle although the same "as already sold or con!eyed to
another person at the time of the accident.
3 The registered o"ner is liable to the in$ured party sub$ect to his right of
recourse against the transferee or the buyer
3 Applicable in case of lease
3 Registered o"ner not liable if !ehicle "as ta#en from him "ithout his
#no"ledge and consent.
3 Applicable to people in!ol!ed on a 12a3it s#ste%4 (arrangement
"hereby a person "ho has been granted a certi1cate of public con!enience allo"s
other persons "ho o"n motor !ehicles to operate them under his license& sometimes
for a fee or percentage of the earnings 333 contrary to public policy)
parties to the @#abit systemA cannot in!o#e the same as
against each other either to enforce their illegal agreement or to in!o#e the same
to escape liability 333 pari delicto rule
ha!ing entered into an illegal contract& neither can see#
relief from the courts and each must bear the conse=uences of his acts
also
applicable to aircrafts and
!essels basic rule that no
person can operate a common
carrier "ithout securing a
certi1cate of public
con!enience and necessity.
C*APTER 2
OBLIGATIONS OF T*E PARTIES
I. O35i$ati!s f t6e carrier
A. B(TC T4 ACCD'T
A common carrier granted a
certi1cate of public con!enience is duty
bound to accept passengers or cargo
"ithout any discrimination.
It is illegal for domestic ship
operators to refuse to accept or
carry passengers or cargo "ithout
$ust cause. (-ection 6E& RA F8FG)
In air transportation& passengers
"ith con1rmed tic#ets "ho "ere not
allo"ed to board are pro!ided "ith
denied boarding compensation and
priority boarding rules. ,o
compensation for refusal if it is
because of 6) go!ernment
re=uisition of the space& 8)
substitution of e=uipment of lesser
capacity "hen re=uired by
operational and or safety and/or
other causes beyond the control of
the carrier& and 9) if arrangements
ha!e been made for the passenger
to ta#e another Hight in a
comparable air transportation "hich
"ill arri!e not later than three hours
after the time of Hight on "hich the
con1rmed space is held is supposed
to arri!e. (Ci!il Aeronautics )oard
Dconomic Regulation)
a. Irounds for !alid refusal to accept
goods
6. dangerous
ob$ects or substances including
dynamites and other e<plosi!es
8. goods are un1t for
transportation
9. acceptance "ould
result in o!erloading
:. contrabands or
illegal goods
G. goods in$urious to
health
E. goods "ill be
e<posed to unto"ard danger
li#e Hood& capture by enemies
and the li#e
J. goods li#e
li!estoc# "ill be e<posed to
diseases
K. stri#e
F. failure to tender
goods on time
In isher !. Cangco& factors in
determining reasonable discrimination
include& 6) suitability to the !essel for
the transportation of such products% 8)
reasonable possibility of danger or
disaster resulting from their
transportation in the form and under the
conditions in "hich they are o+ered for carriage% and 9) the general nature of the business
done by the carrier.
(6) 7aLardous and Bangerous -ubstances
Carrier not properly e=uipped to transport dangerous chemicals or e<plosi!es may !alidly
refuse to accept the same for transport. Those "hich are not authoriLed by the Maritime
Industry Authority to carry such goods may also !alidly refuse the same for transport. There
must be a -pecial 'ermit to Carry from the MARI,A.
(8) (n1t for Transport
Carriers may refuse to accept goods that are un1t for transportation (by nature be un1t for
transportation or are un1t because of improper pac#aging or defect in their containers).
7o"e!er& carriers may accept the goods and limit its liability by stipulation.
If by reason of "ell3founded suspicion of falsity in the declaration as to the contents of the
pac#age carrier should decide to e<amine and in!estigate it in the presence of "itnesses&
"ith the shipper and consignee in attendance. If declaration of shipper is true& e<penses
occasioned by the e<amination and of repac#ing the pac#ages shall be for the account of
the carrier
D!en if the cause of the loss& destruction or deterioration of the goods should be caused by
the character of the goods& or the faulty nature of the pac#ing or of the containers& the
common carrier must e<ercise due diligence to forestall or lessen the loss.
). B(TC T4 BDNIODR T7D I44B-
a. Time of Beli!ery
5here a carrier has made an e<press contract& the goods must be deli!ered "ithin a
speci1ed time other"ise he is liable for any delay (indemnity for damages). In the absence
of any agreement& goods must be deli!ered at its destination "ithin a reasonable time
(depending on the attending circumstances& nature of the goods).
b. Conse=uences/D+ects of Belay
D<cusable delays in carriage suspend& but do not generally terminate& the contract of
carriage% "hen the cause is remo!ed& the master must proceed "ith the !oyage and ma#e
deli!ery. Buring the detention or delay& !essel continues to be liable as a common carrier&
not a "arehouseman& and remains duty bound to e<ercise e<traordinary diligence.
If common carrier !e$5i$e!t5# 0e5a#s in transporting the goods& a natural disaster shall
not free it from responsibility.
If common carrier delays & .it67t 87st ca7se& in transporting the goods or changes the
stipulated or usual route& the contract limiting its liability cannot be a!ailed of in case of the
loss& destruction& or deterioration of the goods.
(6) Abandonment
In case of delay through the fault of the carrier& the consignee may refuse to accept the
goods or may lea!e the goods in the hands of the carrier. It must be communicated to the
carrier in "riting. This right must be e<ercised bet"een the time of delay and before the
arri!al of the goods at its destination. The carrier must pay the full !alue of the goods as if
they had been lost or mislaid.
If abandonment is not made& indemni1cation for the losses and damages by reason of the
delay cannot e<ceed the current price "hich the goods "ould ha!e on the day and at the
place they are to be deli!ered.
The !alue of the goods "hich the carrier must pay in case of loss or misplacement shall be
that "hat is declared in the bill of lading.
Consignee must not defer the payment of the e<penses and transportation charges of the
goods other"ise carrier may demand the $udicial sale of the goods.
(8) Rights of 'assengers in Case of Belay
As to the rights and duties of the parties strictly arising out of delay& the Ci!il Code is silent.
7o"e!er& the Code of Commerce pro!ides for such a situation.
ARTICLE 9:;. In case a !oyage already begun should be interrupted& the passengers shall
be obliged to pay the fare in proportion to the distance co!ered& "ithout Right to reco!er for
losses and damages if the interruption is due to fortuitous e!ent of force ma$eure& but "ith
a right to indemnity if the interruption should ha!e been caused by the captain e<clusi!ely.
If the interruption should be caused by the disability of the !essel and a passenger should
agree to a"ait the repairs& he may not be re=uired to pay any increased price of passage&
but his li!ing e<penses during the stay shall be for his o"n account.
In case the !essel is not able to depart on time and the delay is unreasonable& the
passenger may opt to ha!e his/her tic#et immediately refunded "ithout any refund ser!ice
fee from the authoriLed issuing/tic#eting
o0ce.
C. 57DRD A,B T4 574M BDNIODRDB
a. 'lace
Ioods should be deli!ered to the
consignee in the place agreed upon by
the parties.
The shipper may change the
consignment of the goods pro!ided that
at the time of ordering the change of the
consignee the bill of lading signed by
the carrier be returned to him& in
e<change for another "herein the
no!ation of the contract appears. The
e<penses occasioned by the change
shall be for the account of the shipper.
b. Consignee
Beli!ery must generally be made to the
o"ner or consignee or to someone
la"fully authoriLed by him to recei!e the
goods for his account or to the holder of
the negotiable instrument.
c. Belay to Transport 'assengers
D+ects of delayed and unfnished
voyage in inter3island !essels.
!essel can not continue or
complete her !oyage for any
cause carrier is under
obligation to transport the
passenger to his/her
destination at the e<pense of
the carrier including free meals
and lodging before the
passenger is transported to
his/her destination% the
passenger may opt to ha!e
his/her tic#et refunded in full if
the cause of the un1nished
!oyage is due to the negligence
of the carrier or to an amount
that "ill su0ce to defray
transportation cost at the
shortest possible route if the
cause of the un1nished !oyage
is fortuitous e!ent.
!essel is delayed in arri!al at
the port of destination free
meals during mealtime
delay in departure at the point
of origin due to carrier?s
negligence% fortuitous e!ent 3
free meals during mealtime%
carrier not obliged to ser!e free
meals
carrier is not obliged to inform
passengers of sailing schedule
of the !essel
).B(TC T4 DPDRCI-D DPTRA4RBI,ARC
BDNIID,CD
Ioods should be deli!ered in the
same condition that they "ere recei!ed
and to transport the passengers "ithout
encountering any harm or loss.
ARTICLE 1(<<. A common carrier is
bound to carry the passengers safely as
far as human care and foresight can
pro!ide& using the utmost diligence of
!ery cautious persons& "ith a due regard
for all the circumstances. (Ci!il Code)
a. 'resumption of ,egligence
T"o conditions for the birth of the presumption of negligence.
6. there e<ists a contract bet"een the passenger or the shipper and the common
carrier
8. the loss& deterioration& in$ury or death too# place during the e<istence of the
contract
Boctrine of 'ro<imate Cause there is presumption of negligence
If the goods are lost& destroyed or deteriorated& common carriers are presumed to ha!e
acted negligently& unless they pro!e that they obser!ed e<traordinary diligence. In case of
death of or in$uries to passengers& common carriers are presumed to ha!e been at fault or
to ha!e acted negligently& unless they pro!e that they obser!ed e<traordinary diligence.
b. Buration of Buty
(6) Carriage of Ioods
ARTICLE 1()9. The e<traordinary responsibility of the common carrier lasts from the time
the goods are unconditionally placed in the possession of& and recei!ed by the carrier for
transportation until the same are deli!ered& actually or constructi!ely& by the carrier to the
consignee or to the person "ho has a right to recei!e themQ
ARTICLE 1()(. The common carrier?s duty to obser!e e<traordinary diligence o!er the
goods remains in full force and e+ect e!en "hen they are temporarily unloaded or stored in
transit& unless the shipper or o"ner has made use of the right of stoppage in transitu.
(common carrier becomes a "arehouseman ordinary diligence)
ARTICLE 1();. The e<traordinary liability of the common carrier continues to be operati!e
e!en during the time the goods are stored in a "arehouse of the carrier at the place if
destination& until the consignee has been ad!ised of the arri!al of the goods and has had
reasonable opportunity thereafter to remo!e them or other"ise dispose of them.
(8) Carriage of 'assengers
)y trains the e<traordinary responsibility of common carrier commences the moment the
person "ho purchases the tic#et (or a Rto#en? or Rcard?) from the carrier presents himself at
the proper place and in a proper manner to be transported "ith a bona 1de intent to ride
the coach.
* Mere purchase of a tic#et does not of itself create the relation of carrier and passenger but
it is an element in the inception of the relation.
* A proper person "ho enters upon the carrier?s premises (station& tic#eting o0ce& or
"aiting room) "ith the intention of becoming a passenger "ill ordinarily be !ie"ed as
assuming the status of a passenger.
* 4ne "ho goes to the railroad station to in=uire as to the possibility of securing passage on
a freight train& "hich he #no"s& by the rules of the company& is not allo"ed to carry
passengers& and to secure passage thereon if possible& is not entitled to the rights of a
passenger but is a mere trespasser.
* 4ne "ho rides upon any part of the !ehicle or con!eyance "hich is unsuitable or
dangerous& or "hich he #no"s is not intended for passengers& is not presumed to be a
passenger.
* 4ne "ho secures free passage by fraud or stealth is precluded from reco!ery for in$uries
sustained through the negligence of the carrier& for he has not assumed the status of a
passenger.
* A person riding on a freight train& on a dri!er?s pass or similar arrangement& to loo# after
li!estoc# being transported and as incident to such transportation is& generally regarded as
a passenger for hire.
* Motor !ehicles li#e $eepneys and buses are duty bound to stop their con!eyances for a
reasonable length of time in order to a+ord passengers an opportunity to board and enter&
and they are liable for in$uries su+ered by boarding passengers resulting from the sudden
starting up or $er#ing of their con!eyances "hile they do so. 4nce a public utility bus or
$eepney stops& it is ma#ing a continuous o+er to bus riders.
Buty to e<ercise utmost diligence "ith respect to passengers "ill not ordinarily terminate
until the passenger has& after reaching his destination& safely alighted from the carrier?s
con!eyance or had a reasonable opportunity to lea!e the carriers premises.
D. BDD,-D- 4 C4MM4, CARRIDR-
6. lood& storm& earth=ua#e& lightning& or other natural disaster or calamity
8. Act of the public enemy in "ar& "hether international or ci!il
9. Act or omission of the shipper or o"ner of the goods
:. The character of the goods or defects in the pac#ing or in the containers
G. 4rder or act of competent public authority
E. D<ercise of e<traordinary diligence
ortuitous D!ent to be a !alid defense
must be established to be the pro<imate
cause of the loss
Re=uisites.
6. The cause of the unforeseen and the
une<pected occurrence& or of the failure
of the debtor to comply "ith his
obligation&
must be independent of the human
"ill
8. It must be impossible to foresee the
e!ent "hich constitutes the caso
fortuito& or if it can be foreseen& it must
be impossible
to a!oid
9. The occurrence must be such as to
render it impossible for the debtor to
ful1ll his obligation in a normal manner
:. The obligor (debtor) must be free
from any participation in or the
aggra!ation of the in$ury resulting to the
creditor
In order for the common carrier to be
e<empted from responsibility& the
natural disaster must ha!e been the
pro<imate and only cause of the loss.
7o"e!er& the common carrier must
e<ercise due diligence to pre!ent or
minimiLe loss before& during and after
the occurrence of Hood& storm or other
natural disaster in order that the
common carrier may be e<empted from
liability for the loss& destruction& or
deterioration of the goods.
Fire not considered as a natural
calamity or disaster
Fire caused by lightning a natural
calamity
Hijacking does not fall under the
categories of e<empting causes% the
common carrier is presumed to be at
fault or to ha!e acted negligently unless
there is a proof of e<traordinary
diligence on its part
Mechanical defects damage or in$ury
resulting from mechanical defects is not
a damage or in$ury that "as caused by
fortuitous e!ent% carrier is liable to its
passengers for damages caused by
mechanical defects of the con!eyance
(brea#age of a faulty drag3lin# spring&
fracture of the !ehicle?s right steering
#nuc#le& defecti!e brea#s)
'ages 68936FS
*untilla !. ontanar
@Tire3blo"outsA "as not considered as
fortuitous e!ent although it "as alleged
that the tires "ere in good condition% no
e!idence "as presented to sho" that
the e!idence "ere due to ad!erse road
conditions the carrier must pro!e all
angles.
The e<plosion could ha!e been caused
by too much air pressure in$ected into
the tires and the fact that the $eepney
"as o!erloaded and speeding at the
time of the accident.
b. 4T7DR I,OANIB BDD,-D-
6. Bamage to cargo due to DP'N4-I4, of another cargo not attributable to peril of the
seas or accidents of na!igation.
8. Bamage by 54RM- and RAT- resulting to damage to cargoes can?t be cited as an
e<cuse by the carrier.
9. Bamage by 5ATDR through a port "hich had been left open or insu0ciently fastened on
sailing.
:. Carrier cannot escape liabilities to third persons if damage "as caused by )ARRATRC
"here the master or cre" of the ship committed unla"ful acts contrary to their duties
includes theft and fraudulently running the ship ashore.
Cases.
6. 'roblem. A carrier bus on its "ay to its destination encountered an engine failure&
thus& it has to be repaired for 8 days. And "hile in the repair shop& a typhoon came
resulting to the spoilage of cargoes.
Ans"er. A typhoon although a natural disaster& is not a !alid defense if it is sho"n
that it "as not the only cause of the loss. Dspecially "hen the facts indicate that
the typhoon "as foreseeable and could ha!e been detected through the e<ercise
of reasonable care. Cargoes should ha!e been secured "hile the bus "as being
repaired for 8 days.
8. 'roblem. A passenger told the dri!er that he has !aluable items in his bag "hich
"as placed under his feet and he as#ed the dri!er (to "hich he is seated near) to
"atch for the bag "hile he is asleep.
(a) There ha!e been incidents of thro"ing of stones at passing !ehicles in the
,orth D<press 5ay. 5hile the bus "as tra!ersing the super high"ay& a stone
hurled from the o!erpass and hit the passenger resulting to in$uries. Can the
passenger hold the bus liable for damagesT
Ans"er. Ces. The incident "as foreseeable due the prior incidents of stone
hurling. The bus should ha!e e<ercised utmost diligence and employed
ade=uate precautionary measures to secure safety of passengers since the
incident "as foreseeable. .
745DODR& if the stone thro"ing "as entirely unforeseeable and the carrier
e<ercised the utmost diligence& then& the bus can?t be held liable.
,onetheless& the burden of proof Is on the carrier to pro!e such e<ercise of
diligence. It is up to the carrier to o!erthro" the presumption of negligence.
If the passenger decides to 1le a case& al the passenger has to do is to pro!e
that she "as a passenger of the bus and that she su+ered in$uries "hile on
board the bus.
(b) -upposing that there "ere armed men "ho staged a hold3up "hile the bus
"as speeding along the high"ay. 4ne of them stole the passenger?s bag and
"allet "hile pointing a gun him. Is the bus liableT
Ans"er. ,o. 7and3carried luggages are go!erned by necessary deposit.
)esides& theft "ith use of arms or through irresistible force is a force ma$eure
"hich e<empts carriers from liability.
9. 7i3$ac#ing cannot e<culpate the carrier from liability if it is sho"n that the
employees of the carrier "ere not o!er"helmed by the hi$ac#ers and that there
"as no sho"ing of irresistible force. -ince& there "ere : employers "hile there
"ere only 8 hi$ac#ers and only one of them "as armed "ith bladed "eapon.
4, T7D 4T7DR 7A,B& a hi$ac#ing by 9 armed men is an e!ent "hich is considered
to be beyond the control of the carrier. Thus& the carrier may be ad$udged from
liability if it can be pro!en that the hi$ac#ing "as unforeseeable.
c. '()NIC D,DMC
3 presupposes a state of "ar and refers to the go!ernment of a foreign nation at "ar "ith
the country to "hich the carrier belongs& though not necessarily "ith that to "hich the
o"ner of the gods o"es allegiance.
3 Thie!es& rioter& and insurrectionists are not included. They are merely pri!ate depredators
for "hose acts a carrier is ans"erable.
3 Rebels in insurrection against their o"n go!ernment are generally not embraced in the
de1nition of public enemy. 7o"e!er& if the rebels hold a portion of territory& they ha!e
declared their impendence& cast o+ their allegiance and has organiLed armed hostility to
the go!ernment& and the authority of the latter is at the time o!erthro"n& such an uprising
may ta#e on the dignity of a ci!il "ar& and so matured and magni1ed& the parties are
belligerent and are entitled to belligerent rights.
3 Bepredation by pirates ("hich are enemy of all ci!iliLed nation) e<cuses the carrier from
liability.
3 Common carriers may be e<empted from responsibility only if the act of the public enemy
has been the proximate and only cause of the loss. Moreo!er& due diligence must be
exercised to prevent or at least minimize the loss before during and after the performance
of the act of the public enemy in order that the carrier may be e<empted from liability for
the loss& destruction& or deterioration of the goods.
d. IM'R4'DR 'ACUI,I
Character of the goods and defects in
the pac#aging or in the containers are
defenses a!ailable to the common
carrier. -imilarly& the Carriage of Iood b
-ea Act pro!ides that carrier shall not
liable for. (6) "astage in bul# or "eight
or any damages arising form the
inherent defect& =uality or !ice of goods%
(8) insu0ciency of pac#ing% (9)
insu0ciency or inade=uacy of the
mar#s& or (:) latent defects no
disco!erable by due diligence.
7o"e!er& ,CC li#e"ise pro!ides.
Art. 1(=2. E-e! if t6e 5ss/
0estr7cti!/ r 0eterirati! f t6e
$0s s6750 3e ca7se0 3# t6e
c6aracter f t6e $0s/ r t6e
fa75t# !at7re f t6e ,ac2i!$ r t6e
c!tai!ers/ t6e c%%! carrier
%7st e>ercise 07e 0i5i$e!ce t
fresta55 r 5esse! t6e 5ss.
Thus& if the carrier accepted the $0s
2!.i!$ t6e fact f i%,r,er
,ac2i!$ r e-e! if t6e carrier 0es
!t 2!. 37t t6e 0efect .as
!!et6e5ess a,,are!t 7,!
r0i!ar# 3ser-ati!& it is !t reli!ed
form liability for loss or in$ury to goods
resulting therefrom.
Cases.
6. 'roblem. A carrier #no"ing that
some of a cargo of sac#s of rice
had big holes and others had
openings $ust loosely tied "ith
strings resulting to the spillage
of rice during the trip. Thus&
there "as shortage in the
deli!ery of the cargoes. 5hen
sued due to the shortage& the
carrier interposed a defense
that it "as not liable since the
shortage "as due to the
defecti!e condition of the
sac#s. Becide.
Ans"er. Carrier must still
e<ercise e<traordinary diligence
if the fact of improper pac#ing
is #no"n to the carrier or its
ser!ants& or apparent upon
ordinary obser!ation. If the
carrier accepted the cargo
despite such defects& the
carriers becomes liable for the
damage resulting therefrom.
Apply Article 1742.
e. 4RBDR 4 '()NIC A(T74RITC
Art. 6J:9. If through the order of public
authority the goods are seiLed or
destroyed& the common carrier is not
responsible& ,r-i0e0 sai0 ,735ic
a7t6rit# 6a0 ,.er t iss7e r0er.
Cases.
6. Carrier "as not e<cused from
liability since the order of an
acting mayor "as not
considered as a !alid order of a
public authority. It is re=uired
that public authority "ho
issued the order must be duly
authoriLed to issue the order.
8. Carriage of Ioods by -ea Act
pro!ides that carrier shall not
responsible for loss or damage
resulting from @arrest or restraint of princes& rulers& or people& or seiLure under
legal processA and from @=uarantine restrictionsA.
. DEFENSES IN CARRIAGE OF PASSENGERS
3 'rimary defense of carrier is e>ercise f e>trar0i!ar# 0i5i$e!ce in transporting
passengers. D!en if there is a fortuitous e!ent& the carriers must also present proof of
e<ercise of e<traordinary diligence.
Art. 1(<:. C%%! carriers are 5ia35e fr t6e 0eat6 f r i!87ries t ,asse!$ers
t6r7$6 t6e !e$5i$e!ce r .i55f75 acts f t6e carrier?s e%,5#ees/ a5t67$6 s7c6
e%,5#ees %a# 6a-e acte0 3e#!0 t6e sc,e f t6eir a7t6rit# r i! -i5ati! f
t6e r0ers f t6e c%%! carriers.
T6e 5ia3i5it# 0es !t cease e-e! 7,! ,rf t6at t6e# e>ercise0 0i5i$e!ce i! t6e
se5ecti! a!0 s7,er-isi! f t6eir e%,5#ees.
Art. 1(9). Carrier is res,!si35e fr i!87ries s7@ere0 3# a ,asse!$er ! acc7!t
f t6e .i55f75 acts r !e$5i$e!ce f t6er ,asse!$ers r f stra!$ers, if the
common carriers employees through the exercise of the diligence of a good
father of a family could have prevented or stopped the act or omission.
a. Dmployees
3 Carrier is liable for the acts of its employees. It can?t escape liability by claiming
that it e<ercised due diligence in super!ision and selection of its employees (unli#e
in =uasi3delicts).
Reasons for the rule.
6. (nderta#ing of the carrier re=uires that its passenger that full measure of
protection a+orded by the e<ercise of high degree of care prescribed by la"& inter
alia from !iolence and insults at the hands of strangers and other passengers& but
abo!e all& from the acts of the carrier?s o"n ser!ants.
8. The liability of the carrier for the ser!ant?s !iolation of duty to performance of his
contract to safely transport the passenger& delegating there"ith the duty of
protecting the passenger "ith utmost care prescribed by la".
9. As bet"een the carrier and the passenger& the former must bear the ris# of
"rongful acts or negligence of the carrier?s employees against passenger& since it&
and not the passenger& has the po"er to select and remo!e them.
b. 4ther 'assengers and Third 'ersons
5ith respect to acts of strangers and other passengers resulting in in$ury to
apassenger& the a!ailability of such defense is also sub$ect to the e<ercise of a carrier
of due diligence to pre!ent or stop the act or omission.
,egligence of the carrier need not be the sole cause of the damage or in$ury to the
passenger or the goods. The carrier "ould still be liable e!en if the contractual breach
concurs "ith the negligent act or omission of another person.
G. PASSENGER?S BAGGAGES
Rules that are applicable to goods that are being shipped are also applicable to baggage
deli!ered to the custody of the carrier. Arts. 6J99. 6J9: and 6J9E of Ci!il Code are
applicable.
7o"e!er& if the luggage "as hand3carried& Arts. 6FFK& 8SSS38SS9 shall apply.
Art. 1::;. T6e 0e,sit f e@ects %a0e 3# t6e tra-e55ers i! 6te5s r i!!s s6a55
a5s 3e re$ar0e0 as !ecessar#. T6e 2ee,ers f 6te5s r i!!s s6a55 3e res,!si35e
fr t6e% as 0e,sitaries/ ,r-i0e0 t6at !tice .as $i-e! t t6e%/ r t t6eir
e%,5#ees/ f t6e e@ects 3r7$6t 3# t6e $7ests a!0 t6at/ ! t6e ,art f t6e
5atter/ t6e# ta2e t6e ,reca7ti!s .6ic6 sai0 6te5A2ee,ers r t6eir s73stit7tes
a0-ise0 re5ati-e t t6e care a!0 -i$i5a!ce f t6eir e@ects. &1(;)'
Art. 2BBB. T6e res,!si3i5it# referre0 t i! t6e t. ,rece0i!$ artic5es s6a55
i!c570e t6e 5ss f/ r i!87r# t t6e ,ers!a5 ,r,ert# f t6e $7ests ca7se0 3# t6e
ser-a!ts r e%,5#ees f t6e 2ee,ers f 6te5s r i!!s as .e55 as stra!$ersC 37t
!t t6at .6ic6 %a# ,rcee0 fr% a!# frce %a8e7re. T6e fact t6at tra-e55ers are
c!strai!e0 t re5# ! t6e -i$i5a!ce f t6e 2ee,er f t6e 6te5s r i!!s s6a55 3e
c!si0ere0 i! 0eter%i!i!$ t6e 0e$ree f care reD7ire0 f 6i%. &1(;=a'
Art. 2BB1. T6e act f a t6ief r r33er/ .6 6as e!tere0 t6e 6te5 is !t 0ee%e0
frce %a8e7re/ 7!5ess it is 0!e .it6 t6e 7se f ar%s r t6r7$6 a! irresisti35e
frce. &!'
Art. 2BB2. T6e 6te5A2ee,er is !t 5ia35e fr c%,e!sati! if t6e 5ss is 07e t t6e
acts f t6e $7est/ 6is fa%i5#/ ser-a!ts r -isitrs/ r if t6e 5ss arises fr% t6e
c6aracter f t6e t6i!$s 3r7$6t i!t t6e 6te5. &!'
Art. 2BB). T6e 6te5A2ee,er ca!!t free 6i%se5f fr% res,!si3i5it# 3# ,sti!$
!tices t t6e e@ect t6at 6e is !t 5ia35e fr t6e artic5es 3r7$6t 3# t6e $7est.
A!# sti,75ati! 3et.ee! t6e 6te5A
2ee,er a!0 t6e $7est .6ere3# t6e
res,!si3i5it# f t6e fr%er as set
frt6 i! artic5es 1::; t 2BB1 is
s7,,resse0 r 0i%i!is6e0 s6a55 3e
-i0. &!'
Cases.
6. Bespite the fact that the carrier
ga!e notice that it shall not be
liable for baggage brought in
by passengers& the carrier is
still liable for lost hand3carried
luggage since it is go!erned by
rules on necessary deposits.
(nder Art. 8SSSS& the
responsibility of the depositary
includes the loss of property of
the guest caused by strangers
but not that "hich may proceed
from force ma$eure. Moreo!er&
article 8SS6 considers theft as
force ma$eure if it is done "ith
use of arms or through
irresistible force.
8. D!en if the passenger did not
declare his baggage nor pay its
charges contrary to the
regulations of the bus
company& the carrier is still
liable in case of loss of the
baggage. -ince& it has the duty
to e<ercise e<traordinary
diligence o!er the baggage that
"as turned o!er to the carrier
or placed in the baggage
compartment of the bus. The
non3payment of the charges is
immaterial as long as the
baggage "as recei!ed by the
carrier for transportation.
II. 4)NIIATI4,- 4 -7I''DR&
C4,-II,DD and 'A--D,IDR.
A. ,egligence of -hipper or
'assenger
The obligation to e<ercise due
diligence is not limited to the
carrier. The shipper is obliged to
e<ercise due diligence in a!oiding
damage or in$ury. ,e!ertheless&
contributory negligence on the part
of the shipper/ passenger "ould
only mitigate the carrier?s liability% it
is not a total e<cuse.
7o"e!er& if the negligence of the
shipper/ passenger is the pro<imate
and only cause of the loss& then& the
carrier shall not be liable. The
carrier may o!ercome the
presumption of negligence and any
be able to pro!e that it e<ercised
e<traordinary diligence in handling
the goods or in transporting the
passenger.
The carrier may be able to pro!e
that the only cause of the loss of
the goods is any of the follo"ing.
6. ailure of the shipper to
disclose the nature of the
goods%
8. Improper mar#ing or direction
as to the destination%
9. Improper loading "hen he
assumes such responsibility.
The shipper must li#e"ise see to it
that the goods are properly pac#ed%
other"ise& liability of the carrier may either be mitigated or barred depending on the
circumstances.
Art. 1(=1. If t6e s6i,,er r .!er %ere5# c!tri37te0 t t6e 5ss/ 0estr7cti!
r 0eterirati! f t6e $0s/ t6e ,r>i%ate ca7se t6eref 3ei!$ t6e
!e$5i$e!ce f t6e c%%! carrier/ t6e 5atter s6a55 3e 5ia35e i! 0a%a$es/ .6ic6
6.e-er/ s6a55 3e eD7ita35# re07ce0.
Art. 1(91. T6e ,asse!$er %7st 3ser-e t6e 0i5i$e!ce f a $0 fat6er f a fa%i5#
t a-i0 i!87r# t 6i%se5f.
Art. 1(92. T6e c!tri37tr# !e$5i$e!ce f t6e ,asse!$er 0es !t 3ar rec-er# f
0a%a$es fr 6is 0eat6 r i!87ries/ if t6e ,r>i%ate ca7se t6eref is t6e
!e$5i$e!ce f t6e c%%! carrier/ 37t t6e a%7!t f 0a%a$es s6a55 3e eD7ita35#
re07ce0.
a. Last C5ear C6a!ce
A negligent carrier is liable to a negligent passenger in placing himself in peril& if the carrier
"as a"are of the passenger?s peril& or should ha!e been a"are of it in the reasonable
e<ercise of due care& had in fact an opportunity later than that of the passenger to a!oid an
accident.
Nast clear chance applies in a suit bet"een the o"ners and dri!ers of colliding !ehicles. It
does no tarise "here a passenger demands responsibility from the carrier to enforce its
contractual obligations. or it "ould be ine=uitable to e<empt the negligent dri!er of the
carrier and its o"ner on the ground that the other dri!er "as li#e"ise guilty of negligence.
3. Assumption of Ris#
Carriers are not insurers of the li!es of their passengers. Thus& in air tra!el& ad!erse "eather
conditions or e<treme climatic changes are some of the perils in!ol!ed in air tra!el& the
conse=uence of "hich the passenger must assume or e<pect.
7o"e!er& there is no assumption of ris# in a case "herein a passenger boarded a carrier
that "as 1lled to capacity. The act of the passenger in ta#ing the e<tension chair does not
amount to implied assumption of ris#.
Case.
Although& there is a sign in the bus that says. @do not tal# to the dri!er "hile the bus is in
motion& other"ise& the company "ould not assume responsibility for any accident..
,onetheless& the passengers dared the dri!er to race "ith another bus& as the bus speeds
up in the attempt to o!erta#e the other bus& it failed to slo" do"n. As a result& the bus turns
turtle causing the death and in$uries to passengers. Is the bus company liableT
Ans"er. Ces. The bus company is obligated to e<ercise utmost diligence in carrying
passengers. This liability cannot be eliminated or limited by simply posting notices. The
passenger cannot be said to ha!e assumed the ris# of being in$ured "hen he urged the
dri!er to accept the dare. At most& the passengers can only be said to be guilty of
contributory negligence "hich "ould mitigate the liability of the dri!er& since the pro<imate
cause of the accident "as the dri!er?s "illful and rec#less act in running the race "ith the
other bus.
). RDII7T
a. Amount to be 'aid
Common carriers are sub$ect to hea!y regulations "ith respect to rates that they are
charging to the public. The regulation of rates is founded upon the !alid e<ercise of the
'olice 'o"er of the state in order to protect the public from arbitrary and e<cessi!e rates
"hile maintaining the e0ciency and =uality of ser!ices rendered. The 1<ing of $ust and
reasonable rates in!ol!es a balancing of in!estor and the consumer interest.
Although the consideration that should be paid to the carrier is still sub$ect to the
agreement bet"een parties& "hat can be agreed upon should not be beyond the ma<imum
amount 1<ed by appropriate go!ernment agency.
b. 5ho "ill pay.
Although either of the shipper or the consignor may pay the freight before or at time the
goods are deli!ered to the carrier for shipment& nonetheless& it is the consignor ("hom the
contract of carriage is made) "ho is primarily liable for the payment of freight "hether or
not he is the o"ner of the goods. The obligation to pay is implied from the mere fact that
the consignor has placed the goods "ith the carrier for the purpose of transportation.
c. Time to pay.
Code of Commerce pro!ides that payment should be made "ithin 8:3hours from the time of
deli!ery in the absence of any agreement bet"een the parties.
ARTICND 9J:. The consignees to "hom the shipment "as made may not defer the
payment of the e<penses and transportation charges of the goods they recei!e after the
lapse of t"enty3four hours follo"ing their deli!ery% and in case of delay in this payment& the
carrier may demand the $udicial sale of
the goods transported in an amount
necessary to co!er the cost of
transportation and the e<penses
incurred.
(6) Carriage of 'assengers by -ea
5ith respect to carriage of goods by
sea& the tic#ets are purchased in
ad!ance. Carriers are not supposed to
allo" passengers "ithout tic#ets. The
carrier shall collect/ inspect the
passenger?s tic#et "ithin one hour from
!essel?s departure as not to disrupt
resting or sleeping passengers.
If the !essel is not able to depart on
time and the delay is unreasonable& the
passenger may opt to ha!e his/ her
tic#et refunded "ithout refund ser!ice
fee.
Belayed !oyage means @late departure
of the !essel from its port of origin and/
or late arri!al of the !essel to its port of
destinationA. (nreasonable delay means
@the period of time that has lapsed
"ithout $ust cause and is solely
attributable to the carrier "hich has
pre$udiced the transportation of the
passenger and/ or cargoes to their port
of destination.
A passenger "ho failed ot board the
!essel can refund or re!alidate the tic#et
sub$ect to surcharges. Re!alidation
means @the accreditation of the tic#et
that is not used and intended to be used
for another !oyage.
(8) Carrier?s Nien
If consignor or the consignee fails to pay
the consideration for the transportation
of goods& the carrier may e<ercise his
lien in accordance "ith Art. 9JG of Code
of Commerce.
ARTICND 9JG. The goods transported
shall be especially bound to ans"er for
the cost of transportation and for the
e<penses and fees incurred for them
during their con!eyance and until the
moment of their deli!ery.
This special right shall prescribe eight
days after the deli!ery has been made&
and once prescribed& the carrier shall
ha!e no other action than that
corresponding to him as an ordinary
creditor.
C. BDM(RRAID
Bemurrage is the compensation
pro!ided for the contract of
a+reightment for the detention of the
!essel beyond the time agreed on for
loading and unloading. It is the claim for
damages for failure to accept deli!ery. In
broad sense& !ery improper detention of
a !essel may be considered a
demurrage. Technically& liability for
demurrage e<ists only "hen e<pressly
stipulated in the contract.
(sing the term in broader sense&
damages in the nature of demurrage are
reco!erable for a breach of the implied
obligation to load or unload the cargo
"ith reasonable dispatch& but only by
the party to "hom the duty is o"ed and
only against on "ho is a party to the
shipping contract. ,otice of arri!al of
!essels or con!eyances& or their
placement for purposes of unloading is often a condition precedent to the right to collect
demurrage charges.
C7A'TDR 9. DPTRA4RBI,ARC BINIID,CD
I. RATI4,AND
A common carrier is bound to carry the passengers safely as far a human care and foresight
pro!ide& using the utmost diligence of !ery cautious persons& "ith due regard for all
circumstances.
D<traordinary diligence. Calculated to protect the passengers from the tragic mishaps that
fre=uently occur in connection "ith rapid modern transportation.
II. 745 B(TC I- C4M'NIDB 5IT7
Common carrier binds itself to carry the passengers safely as far as human care and
foresight can pro!ide& using the utmost diligence of a !ery cautious person& "ith due regard
for all the circumstances.
3 The duty e!en e<tends to the members of the cre" or complement operating
the carrier.
A reasonable man or a good father of a family in the position of the carrier must e<ercise
e<traordinary diligence in the performance of his contractual obligation.
3 5hether or not a reasonable man& e<ercising e<traordinary diligence& could
ha!e foreseen and pre!ented the damage or loss that occurred.
III. DDCT 4 -TI'(NATI4,
A. I44B-
The la" allo"s a stipulation "hereby the carrier "ill e<ercise a degree of diligence "hich is
less than e<traordinary "ith respect to goods.
!rt" #$%%" ! stipulation bet&een the common carrier and the shipper o&ner
limiting the liability of the former for the loss destruction or deterioration of the
goods to a degree less than extraordinary diligence shall be valid provided it be'
#" (n &riting signed by the shipper)o&ner*
+" ,upported by a valuable consideration other than the service rendered by the
common carrier -.ote' /ypically fare)freight0* and
1" 2easonable just and contrary to public policy"
). 'A--D,IDR-
There can be no stipulation lessening the utmost diligence that is o"ed to passengers.
!rt" #$3$" /he responsibility of a common carrier for the safety of passengers as
re4uired in !rts" #$11 and #$33 cannot be dispensed &ith or lessened by
stipulation by the posting of notices by statements on tickets or other&ise"
-.ote' !bsolute* extraordinary at all times"0
Iratuitous passenger A stipulation limiting the common carrier?s liability for negligence is
!alid& but not for "illful acts of gross negligence. The reduction of fare does not $ustify any
limitation.
IO. DPTRA4RBI,ARC BINIID,CD I, CARRIAID )C -DA
A. -DA54RT7I,D--
a.) 5arranty of -ea"orthiness of -hip D<traordinary diligence re=uires that the
ship "hich "ill transport the passengers and goods is sea"orthy. -ea"orthiness of
the !essel is impliedly "arranted.
The carrier shall be bound before and at the beginning of the !oyage to e<ercise
due diligence to ma#e the ship sea"orthy.
b.) ,o duty to in=uire )ecause of the implied "arranty of sea"orthiness& shippers
of goods& "hen transacting "ith common carriers& are not e<pected to in=uire into
the !essels sea"orthiness& genuineness of its licenses and compliance "ith all
maritime la"s. 'assengers cannot be e<pected to in=uire e!erytime they board a
common carrier& "hether the carrier possesses the necessary papers or that all the
carrier?s employees are =uali1ed.
It is the carrier that carries such burden of pro!ing that the ship is sea"orthy.
'resentation of certi1cates of sea"orthiness is not su0cient to o!ercome the
presumption of negligence.
c.) Meaning of -ea"orthiness A !essel must ha!e such degree of 1tness "hich an
o"ner "ho is e<ercising e<traordinary diligence "ould re=uire his !essel to ha!e at
the commencement of the !oyage& ha!ing regard to all the probable circumstances
of it. This includes 1tness of the !essel itself to "ithstand the rigors of !oyage&
1tness of the !essel to store
the cargoes and accommodate
passengers to be transported
and that it is ade=uately
e=uipped and properly
manned.
Ieneral Test of -ea"orthiness.
5hether the ship and its
appurtenances are reasonably
1t to perform the ser!ice
underta#en.
D<ample. The carrier
"as able to establish
that the ship itself "as
sea"orthy because
the records re!eal that
the !essel "as
drydoc#ed and
inspected by the 'hil.
Coast Iuard before its
1rst destination.
A "arranty of sea"orthiness
re=uires that it be properly
laden& and pro!ided "ith a
competent master& a su0cient
number of competent o0cers
and seamen& and the re=uisite
appurtenances and e=uipment.
The carrier shall be bound
before and at the beginning of
the !oyage to e<ercise due
diligence to.
6. Ma#e the ship
sea"orthy%
8. 'roperly man&
e=uip& and supply the ship%
9. Ma#e all parts of the
ship in "hich goods
are carried& 1t and
safe for their
reception& carriage&
and preser!ation.
The carrier shall properly and
carefully load& handle& sto"&
carry& #eep& care for& and
discharge the goods carried.
The ship must be cargo"orthy.
The ship must be e0ciently
strong and e=uipped to carry
the particular #ind of cargo
"hich she has contracted to
carry and her cargo must be so
loaded that it is safe for her to
proceed on her !oyage.
The !essel must be ade=uately
e=uipped and properly
manned. 4n top of regular
maintenance and inspection&
Captains& masters or patrons of
!essels must pro!e the s#ill&
capacity& and =uali1cations
necessary to command and
direct the !essel. If the o"ner
of a !essel desires to be the
captain "ithout ha!ing the
legal =uali1cations& he shall
limit himself to the 1nancial
administration of the !essel
and shall entrust the na!igation
to a =uali1ed person.
It is not an e<cuse that the carrier cannot a+ord the salaries of competent and
licensed cre" or that latter is una!ailable.
). 4ODRN4ABI,I
Buty to e<ercise due diligence li#e"ise includes the duty to ta#e passengers or cargoes that
are "ithin the carrying capacity of the !essel.
C. 'R4'DR -T4RAID
The !essel itself may be suitable for the cargo but this is not enough because the cargo
must also be properly stored.
Cargo must generally not be placed on dec#. The carrying of dec# cargo raises the
presumption of unsea"orthiness unless it can be sho"n that the dec# cargo "ill not
interfere "ith the proper management of the ship.
B. ,DINIID,CD 4 CA'TAI, A,B CRD5
ailure on the part of the carrier to pro!ide competent captain and cre" should be
distinguished from the negligence of the said captain and cre"& because the latter is
co!ered by the Nimited Niability Rule (liability of the shipo"ner may be limited to the !alue
of the !essel). If the negligence of the captain and cre" can be traced to the fact that they
are really incompetent& the Nimited Niability Rule cannot be in!o#ed because the shipo"ner
may be deemed negligent.
a.) Rules on passenger safety (Read Memorandum Circular ,o. 66:. p. 8S:)
D. BDOIATI4, A,B TRA,--7I'MD,T
a.) Be!iation If there is an agreement bet"een the shipper and the carrier as to
the road o!er "hich the con!eyance is to be made (sub$ect to the appro!al by the
Maritime Industry Authority)& the carrier may not change the route& unless it be by
reason of force ma$eure. 5ithout this cause& he shall be liable for all the losses
"hich the goods may su+er& aside from paying the sum stipulated for that case.
5hen on account of the force ma$eure& the carrier had to ta#e another route "hich
resulted to an increase in transportation charges& he shall be reimbursed upon
formal proof.
b.) Transshipment The act of ta#ing cargo out of one ship and loading it into
another% to transfer goods from the !essel stipulated in the contract of
a+reightment to another !essel before the place of destination named in the
contract has been reached.
Transshipment of freight "ithout legal e<cuse is a !iolation of the contract and
sub$ects the carrier to liability if the freight is lost e!en by a cause other"ise
e<cepted.
O. DPTRA4RBI,ARC BINIID,CD I, CARRIAID )C NA,B
A. C4,BITI4, 4 OD7ICND
Common carriers that o+er transportation by land are similarly re=uired to ma#e sure that
the !ehicles that they are using are in good order and condition.
Rule on Mechanical Befects If the carriers "ill replace certain parts of the motor !ehicle&
they are duty bound to ma#e sure that the parts that they are purchasing are not defecti!e.
7ence& it is a long3standing rule that a carrier cannot escape liability by claiming that the
accident that resulted because of a defecti!e brea# or tire is due to a fortuitous e!ent. This
is true e!en if it can be established that the tire that "as sub$ect of a blo"3out is brand ne".
The duty to e<ercise e<traordinary diligence re=uires the carrier to purchase and use !ehicle
parts that are not defecti!e.
). TRAIC R(ND-
The carrier fails to e<ercise e<traordinary diligence if it "ill not comply "ith basic tra0c
rules. The Ci!il Code pro!ides for a presumption of negligence in case the accident occurs
"hile the operator of the motor !ehicle is !iolating tra0c rules.
In cases in!ol!ing breach of contract of carriage& proof of !iolation of tra0c rules con1rms
that the carrier failed to e<ercise e<traordinary diligence.
C. B(TC T4 I,-'DCT
There is no unbending duty to inspect each and e!ery pac#age or baggage that is being
brought inside the bus or $eepney. The carrier is duty bound to conduct such inspection
depending on the circumstances.
OI. DPTRA4RBI,ARC BINIID,CD I, CARRIAID )C AIR
The aircraft must be in such a condition that it must be able to "ithstand the rigors of Hight.
Air"orthiness An aircraft& its engines propellers& and other components and accessories&
are of proper design and construction& and are safe for air na!igation purposes& such design
and construction being consistent "ith accepted engineering practice and in accordance
"ith aerodynamic la"s and aircraft
science.
'roof of air"orthiness is not by itself
su0cient to pro!e e<ercise of
e<traordinary diligence.
The fact that the Hight "as cancelled
due to fortuitous e!ent does not mean
that the carrier?s duty already ended.
The carrier is still obligated to loo# after
the con!enience and comfort of the
passenger.
A. I,-'DCTI4,
Is the duty of the carrier to ma#e in=uiry
as to the general nature of the articles
shipped and of their !alue before it
consents to carry them% and its failure to
do so cannot defeat the shipper?s right
to reco!ery of full !alue of the pac#age
if lost& in the absence of sho"ing of
fraud or deceit on the part of the
shipper.
5here a common carrier has reasonable
ground to suspect that the o+ered goods
are of a dangerous character& the carrier
has the right to #no" the character of
such goods and to insist inspection& if
reasonable and practical under the
circumstances& as a condition of
recei!ing and transporting such goods.
To be sub$ected to unusual search& other
than the routinary inspection procedure
customarily underta#en& there must
e<ist proof that "ould $ustify cause for
apprehension that the baggage is
dangerous as to "arrant e<hausti!e
inspection& or e!en refusal to accept
carriage of the same.
C*APTER =
BILL OF LADING
I. CONCEPTS/ DEFINITION AND
KINDS
Bi55 f La0i!$ &BOL'A a "ritten
ac#no"ledgement& signed by the master
of a !essel or other authoriLed agent of
the carrier& that he has recei!ed the
described goods from the shipper& to be
transported on the e<pressed terms to
be described the place of destination&
and to be deli!ered to the designated
consignees of the parties. It operates as
a (6) RDCDI'T (8) as a C4,TRACT (9) as
a B4C(MD,T 4 TITND.
A )4N is not necessary for the perfection
of a contract of carriage. Thus& the
obligation to e<ercise e<traordinary
diligence by the carrier is still re=uired
e!en if there is no bill of lading. In the
absence of the bill of lading& disputes
shall be determined on the basis of the
pro!isions in the ,e" Ci!il Code and
suppletorily by the Code of Commerce.
UI,B- of )INN of NABI,I
6. Clean )ill of
Nading
Boes not contain any notation indicating
any defect in the goods.
8. oul )ill of
Nading
4ne that contains the abo!ementioned
notation.
9. -pent )ill of
Nading
The goods are already deli!ered but the
bill of lading "as not yet returned (upon
deli!ery& the carrier is supposed to
retrie!e the co!ering bill of the goods)
:. Through )ill
of Nading
Issued by a carrier "ho is obliged to use
the facilities of other carriers as "ell as his
o"n facilities for the purpose of
transporting the goods from the city of the
seller to the city of the buyer& "hich )4N
is honored by the second and other
interested carriers "ho don?t issue their
o"n )4N.
G. 4n )oard )ill 3states that the goods ha!e been recei!ed
on board the !essel "hich is to carry the
goods.
3apparently guarantees the certainty of
shipping as "ell as the sea"orthiness of
the !essel to carry the goods.
E. Recei!ed for
-hipment )ill
3states that the goods ha!e been recei!ed
for shipment "ith or "ithout specifying
the !essel by "hich the goods are to be
shipped.
3issued "hen conditions are not normal
and there is insu0ciency of shipping
space.
J. Custody )ill
of Nading
The goods are already recei!ed by the
carrier but the !essel indicated therein
has not yet arri!ed in the port.
K. 'ort )ill of
Nading
The !essel indicated in the )4N that "ill
transport the goods is already in the port.
DDCTIOITC of )4N3 upon its deli!ery to and acceptance by the shipper. The acceptance of
the bill "ithout dissent raises the presumption that all the terms therein "ere brought to the
#no"ledge of the shipper and agreed to by him& and in the absence of fraud or mista#e& he
is stopped thereafter from denying that he assented to such claims.
T*E )AFOLD NATURE OF T*E BILL OF LADING
I. RDCDI'T3 as comprehending all methods of transportation& a )4N may be de1ned as a
"ritten ac#no"ledgement of the receipt of goods and an agreement to transport an to
deli!er them at a speci1ed place to a person named or on his order. 4ther terms& @shipping
receiptsA& @for"arders receiptsA& and @receipts for transportationA. (-C) the designation
ho"e!er is not material& and neither is the form of the instrument. If it contains an
ac#no"ledgement by the carrier of the receipt of goods for transportation it is& in legal
e+ect a )4N.
II. C4,TRACT 3 it e<presses the terms and conditions of the agreement bet"een the parties%
names the parties% includes consignees etc. It is the la" bet"een the parties bound by its
terms and conditions.
It is to be construed liberally in fa!or of the shipper "ho adhered to such bill as it is a
contract of adhesion. The only participation of the party is the signing of his signature or
his adhesion thereto.
ART. 8: (,CC). In all contractual property or other relations& "hen one of the parties is at a
disad!anatge on account of his moral dependence& ignorance indigence& mental "ea#ness&
tender age and other handicap& the court must be !igilant for his protection.
It is co!ered by the parol e!idence rule& that the terms of the contract are conclusi!e upon
the parties and e!idence aliunde is not admissible to !ary or contradict a complete
enforceable agreement. If mista#e "as alleged& it must be timely raised in the pleadings
and it must be a mista#e of fact mutual to the parties.
The )4N is the legal e!idence of the contract and the entries thereof constitutes prima
facie e!idence of the contract. All the essential elements of a !alid contract (cause&
consent& ob$ect) are present "hen such bill are issued.
)A-IC -TI'(NATI4,- (for o!erland transpo& maritime commerce and airline transpo of
passengers& please refer to the te<tboo# for the codal pp. 8EJ38JG)
'R47I)ITDB A,B NIMITI,I -TI'(NATI4,
6. D<empting the carrier from any and all liability for loss or damage occasioned by its o"n
negligence 3 I,OANIB as it is contrary to public policy.
8. 'arties may stipulate that the
diligence to be e<ercised by the carrier
for the carriage of goods be less than
e<traordinary diligence if it is (a) in
"riting and signed by both parties (b)
supported by a !aluable consideration
other than the ser!ice rendered by the
common carrier ( c ) the stipulation is
$ust& reasonable and not contrary to la".
9. 'ro!iding an un=uali1ed limitation of
such liability to an agreed !aluation 3
I,OANIB
:. Nimiting the liability of the carrier to
an agreed !aluation unless the shipper
declares a higher !alue and pays a
higher rate of freight3 OANIB and
D,4RCDA)ND.
III. A- A B4C(MD,T 4 TITND
!2/ #35$ -.660" ! document of title in
&hich it is stated that the goods
referred to therein &ill be delivered to
the bearer or to the order of any person
named in such document is a negotiable
document of title"
If the document of title contains the
re=uired "ords of negotiability to ma#e
the instrument negotiable under Article
6GSJ of the ,CC& the document remains
to be negotiable e!en if the "ords @not
negotiableA or non negotiable are places
thereon
a. )earer document3 negotiated by
deli!ery
b. 4rder document3 negotiated by
indorsement of the speci1ed person so
named
D+ects of negotiation. ,egotiation of the
document has the e+ect of manual
deli!ery so as to constitute the
transferee the o"ner of the goods.
RECOEER+ OF DAFAGES FROF
CARRIER FOR CARRIAGE OF GOODS:
6. Inter-island 3 if goods arri!ed in
damaged condition &Art. )99'.
a. If damage is apparent& the shipper
must 1le a claim immediately (it may
be oral or "ritten)%
b. If damage is not apparent& he should
1le a claim "ithin 8: hours from
deli!ery.
The 1ling of claim under either (6) or
(8) is a condition precedent for reco!ery.
If the claim is 1led& but the carrier
refuses to pay. enforce carrier?s liability
in court by 1ling a case.
a. "ithin E year& if no bill of lading
has been issued% or
b. "ithin 6S years& if a bill of lading
has been issued.
8. verseas "here goods arri!ed in a
damaged condition from a foreign port
to a 'hilippine port of entry. &COGSA'
a. upon discharge of goods& if the
damage is apparent& claim should be
1lled immediately%
b. if damage is not apparent& claim
should be 1lled "ithin 9 days from
deli!ery.
iling of claim is not a condition
precedent& but an action must be 1led
against the carrier "ithin a period of 6 year from discharge% if there is no deli!ery& the one3
year period starts to run from the day the !essel left port (in case of undeli!ered or lost
cargo)& or from deli!ery to the arrastre (in case of damaged cargo).
5here there "as deli!ery to the "rong person& the prescripti!e period is 6S years because
there is a !iolation of contract& and the carriage of goods by sea act does not apply to
misdeli!ery. &A!$ -. A%erica! SS A$e!cies &1: SCRA 9)1'
CARRIAGE OF GOODS B+ SEA ACT &C.A. N. 9<'
C4I-A is applicable in international maritime commerce. It can be applied in domestic
sea transportation if agreed upon by the parties. (paramount clause)
C4I-A is suppletory to the Ci!il Code and the Code of Commerce in the Carriage of goods
from foreign ports to the 'hilippines.
(nder the -ec. : (G)& the liability limit is set at VGSS per pac#age unless the nature and
!alue of such goods is declared by the shipper. This is deemed incorporated in the bill of
lading e!en if not mentioned in it &Easter! S6i,,i!$ -. IAC/ 1<B SCRA =9)'.
,ote that Art. 6J:F of the ,CC applies to inter3island trade.
Prescri,ti-e ,eri0s
-uit for loss or damage to the cargo should be brought "ithin one year after.
a. deli!ery of the goods% or
b. the date "hen the goods should be deli!ered. &Sec. )G9H'
The one3year prescripti!e period is suspended by.
6. e<press agreement of the parties &U!i-ersa5 S6i,,i!$ Li!es/ I!c. -. IAC/ 1;; SCRA
1(B'
8. "hen an action is 1led in court until it is dismissed. &Ste-e!s I C. -. Nr0e7tsc6er
L5#0/ 9 SCRA 1;B'
WARSAW CONEENTION f 1:2:
W*EN APPLICABLE:
Applies to all international transportation of person& baggage or goods performed by aircraft
for hire. @International transportationA means any transportation in "hich the place of
departure and the place of destination are situated either.
6. "ithin the territories of t"o 7igh Contracting 'arties regardless of "hether or not there
be a brea# in the transportation or transshipment& or
8. "ithin the territory of a single 7igh Contracting 'arty& if there is an agreed stopping place
"ithin a territory sub$ect to the so!ereignty& mandate or authority of another po"er& e!en
though that po"er is not a party to the Con!ention.
Transportation to be performed by se!eral successi!e air carriers shall be deemed to be one
undi!ided transportation& if it has been regarded by the parties as a single operation&
"hether it has been agreed upon under the form of a single contract or of a series of
contracts& and it shall not lose its international character merely because one contract or a
series of contracts is to be performed entirely "ithin a territory sub$ect to the so!ereignty&
suLerainty& mandate& or authority of the same 7igh Contracting 'arty. &Art. 1'
NOTE: 5arsa" pre!ails o!er the Ci!il Code& Rules of Court and all la"s in the
'hilippines since an international la" pre!ails o!er general la".
W*EN NOT APPLICABLE:
6. If there is "illful misconduct on the part of the carrier?s employees. The Con!ention does
not regulate& much less e<empt& carrier from liability for damages for !iolating the rights of
its passengers under the contract of carriage &PAL -. CA/ 2<( SCRA ))'.
8. "hen it contradicts public policy%
9. if the re=uirements under the Con!ention are not complied "ith.
LIABILIT+ OF CARRIER FOR DAFAGES:
6. Beath or in$ury of a passenger if the accident causing it too# place on board the aircraft
or in the course of its operations% &Art. 1('
8. Bestruction& loss or damage to any luggage or goods& if it too# place during the carriage%
&Art. 1;' and
9. Belay in the transportation of passengers& luggage or goods. &Art. 1:'
NOTE: The 7ague 'rotocol amended the 5arsa" Con!ention by remo!ing the pro!ision
that if the airline too# all necessary steps to a!oid the damage& it could e<culpate itself
completely (Art. 8S(6)). &A5ita5ia -. IAC/ 1:2 SCRA :'
LIFIT OF LIABILIT+
6. passengers 3 limited to 8GS&SSS francs
e<cept. agreement to a higher limit
8. Ioods and checked7in baggage 3 8GS francs/#g
e<cept. consigner declared its !alue
and paid a supplementary sum&
carrier liable to not more than the
declared sum unless it pro!es the
sum is greater than its actual !alue.
9. hand7carry baggage 7 limited to G&SSS
francs/passenger
An agreement relie!ing the carrier from
liability or 1<ing a lo"er limit is null and
!oid. &Art. 2)'
Carrier not entitled to the foregoing limit
if the damage is caused by "illful
misconduct or default on its part. &Art.
2<'
ACTION FOR DAFAGES
6. 6ondition precedent
A "ritten complaint must me made
"ithin.
3 9 days from receipt of baggage
3 J days from receipt of goods
3 in case of delay& 6: days from
receipt of baggage/goods
other"ise the action is barred e<cept
in case of fraud on the part of the
carrier. &Art. 29'
8. 8urisdiction 3 go!erned by domestic
la"
9. 9enue : at the option of the plainti+.
a. court of domicile of the carrier%
b. court of its principal place of
business%
c. court "here it has a place of
business through "hich the
contract has been made%
d. court of the place of destination.
&Art. 2;'
:. ;rescriptive period 8 years from.
a. date of arri!al at the destination
b. date of e<pected arri!al
c. date on "hich the transportation
stopped. &Art. 2:'
5. 2ule in case of various successive
carriers
a. In case of transportation of
passengers the action is 1led
only against the carrier in "hich
the accident or delay occurred
unless there is an agreement
"hereby the 1rst carrier assumed
liability for the "hole $ourney.
b. In case of transportation of
baggage or goods
i. the consignor can 1le an action
against the 1rst carrier and
the carrier in "hich the
damage occurred
ii. the consignee can 1le an action
against the last carrier and the
carrier in "hich the damage
occurred. These carriers are
$ointly and se!erally liable.
&Art. )B'
,ota )ene. C4I-A/5AR-A5 applies to
foreign !essels or airplane or
international tra!el
Code of Commerce applies
to inter3island or domestic tra!el.
Bi55 f La0i!$ as Dc7%e!t f Tit5e
(page 9:6)
)ill of lading is a document of title under the Ci!il Code. It can be a negotiable
document of title.
!" .egotiability
3 It is negotiable if it is deli!erable to the bearer& or to the order of any person named in
such document. (Art. 6GSJ& Ci!il Code)
a0 <=ect of ,tamp or .otation >.on7.egotiable?
the document remains to be negotiable e!en if the "ords @not3negotiableA or @non3
negotiableA are placed thereon. 3 Art. 6G6S (Ci!il Code)
@" Ho& .egotiated
a) )earer document (Art. 6GSK and 6G66)
3 may be negotiated be deli!ery
b0 Arder document (-ec. 9K& ,IN and Art. 6GSF& ,CC)
3 can only be negotiated through the indorsement of the speci1ed person so named.
3 such indorsement may be in blan#& to bearer or to a speci1ed person.
5here a negotiable document of title is transferred for !alue by deli!ery& and the
endorsement of the transferor is essential for negotiation& the transferee ac=uires
a right against the transferor to compel him to endorse the document. <<< (Art.
6G6G& Ci!il Code)
6" <=ects of .egotiation
3 has the e+ect of manual deli!ery so as to constitute the transferee the o"ner of the
goods
3 results in the transfer of o"nership because transfer of document li#e"ise transfers
control o!er the goods
3 refer to Art. 6G69
C6a,ter <
Acti!s a!0 Da%a$es i! Case f Breac6
Cause of action of a passenger and shipper.
a) against common carrier based on culpa contractual or culpa a4uiliana
b) on the part of the dri!er based on either culpa delictual or culpa a4uiliana
If the negligence of third persons concurs "ith the breach& the liability of the third
person "ho "as dri!ing the !ehicle and/or his employer may be based on 4uasi delict.
-olidary liability
3 In case the negligence of the carrier?s dri!er and a third person concurs& the
liability of the parties carrier and his dri!er& third person is $oint and se!eral.
I. ,otice of Claim and 'rescripti!e 'eriod
A. O-er5a!0 Tra!s,rtati! f G0s a!0 Cast.ise S6i,,i!$
a) 5hen to 1le a claim "ith carrier
3 Art. 9EE constitutes a condition precedent to the accrual of a right of action against a
carrier for damage caused to the merchandise.
(nder Art. 9EE of the Code of Commerce& an action for damages is barred if the
goods arri!ed in damaged condition and no claim is 1led by the shipper "ithin the
follo"ing period.
6) immediately if damage is apparent%
8) "ithin t"enty four (8:) hours from deli!ery if damage is not apparent
3 the period does not begin to run until the consignee has recei!ed possession of the
merchandise that he may e<ercise o!er it the ordinary control pertinent to
o"nership.
3 This pro!ision applies e!en to transportation by sea "ithin the 'hils. or coast"ise
shipping.
3 does not apply to misdelivery of goods.
)ut the period prescribed in Art. 9EE may be sub$ect to modi1cation by agreement of
the parties.
b) D<tincti!e 'rescription
3 si< (E) years if there is no "ritten contract
3 ten (6S) years if there is "ritten contract
This rule li#e"ise applies to carriage of passengers for domestic transportation.
B. I!ter!ati!a5 Carria$e f G0s 3# Sea
A claim must be 1led "ith the carrier "ithin the follo"ing period.
6) if the damage is apparent the claim should be 1led immediately upon discharge of the
goods% or
8) "ithin 9 days from deli!ery if
damage is not apparent
iling of claim is not condition
precedent. Thus& regardless of
"hether the notice of loss or
damage has been gi!en& the
shipper can still bring an action to
reco!er said loss or damage
"ithin one year after the deli!ery
of the goods.
a) 'rescription
Action for damages must be 1led
"ithin a period of one (6) year
from discharge of the goods.
The period is not suspended by
an e<tra3$udicial demand.
Boes not apply to con!ersion or
misdeli!ery.
The one (6) year period refers to
loss of goods and not to
misdeli!ery.
3 Bamages arising from delay or
late deli!ery id not the damage
or loss contemplated under the
C4I-A. The goods are not
actually lost or damaged. The
applicable period is ten (6S)
years.
This rule applies in collision
cases. The one (6) year period
starts not from the date of the
collision but "hen the goods
should ha!e been deli!ered& had
the cargoes been sa!ed.
I!s7ra!ce
The insurer "ho is e<ercising its
right of subrogation is also bound
by the one (6) year prescripti!e
period.
7o"e!er& it does not apply to the
claim against the insurer for the
insurance proceeds. The claim
against the insurer is based on
contract that e<pires in ten (6S)
years.
II. Rec-era35e Da%a$es
Bamages is the pecuniary
compensation& recompense or
satisfaction for an in$ury
sustained& or as other"ise
e<pressed& the pecuniary
conse=uences "hich the la"
imposes for the breach of some
duty or !iolation of some rights.
A. E>te!t f Rec-er# &Art. 22B/
NCC'
Carrier in good faith is liable
only to pay for the damages that
are the natural and probable
conse=uences of the breach of
the obligation and "hich the
parties ha!e foreseen or could
ha!e reasonably foreseen at the
time the obligation "as
constituted.
Carrier in bad faith or guilty of gross negligence liable for all damages& "hether
the same can be foreseen or not.
3 The carrier "ho may be compelled to pay has the right of recourse against the
employee "ho committed the negligent& "illful or fraudulent act.
B. Ki!0s f Da%a$es
a' Act7a5 r C%,e!satr# Da%a$es
only for the pecuniary loss su+ered by him as he has duly pro!ed
8 Uinds.
6. the loss of "hat a person already possesses (daBo emrgente)%
8. the failure to recei!e as a bene1t that "ould ha!e pertained to him (lucro cesante).
Camages may be recovered. Art. 88SG (Ci!il Code)
6) or loss or impairment of earning capacity in cases of temporary or permanent personal
in$ury%
8) or in$ury to the plainti+?s business standing or commercial credit.
Bamages cannot be presumed.
In case of goods the plainti+ is entitled to their !alue at the time of destruction.
or personal in$ury and e!en death the claimant is entitled to all medical e<penses
as "ell as other reasonable e<penses that he incurred to treat his or her relati!e?s
in$uries.
In case of death the plainti+ is entitled to the amount that he spent during the "a#e
and funeral of the deceased. )ut& e<penses after the burial are not compensable.
3 Read Art. 88SE (Ci!il Code)
The amount of 1<ed damages is no" 'GS&SSS.SS
1' Lss f ear!i!$ ca,acit#
,et Darning Capacity ; Nife D<pectancy < WIross Annual Income less ,ecessary Ni!ing
D<pensesX
Nife e<pectancy (8/9 < KS age at death)
,et earnings based on the gross income of the !ictim minus the necessary
incidental li!ing e<penses "hich the !ictim "ould ha!e incurred if he "ere ali!e.
Amount of li!ing e<penses must be established. In the absence of proof& it is 1<ed at
1fty (GSY) of the gross income.
Rules on loss of earning applies "hen the breach of the carrier resulted in the
plainti+?s permanent incapacity.
2' Attr!e#?s fees
3 refer to Art. 88SK of the Ci!il Code
3 attorney?s fees may be a"arded in an action for breach of contract of carriage under par.
6&8&:&G&6S and 66 of Art. 88SK.
)' I!terests
68Y per annum if it constitutes a loan or forbearance of money
EY per annum if it does not constitute loan or forbearance of money
68Y 3 for 1nal $udgment
3' Fra5 Da%a$es
3 Includes physical su+ering& mental anguish& fright& serious an<iety& besmirched reputation&
"ounded feelings& moral shoc#& social humiliation and similar in$ury.
3 Though incapable of pecuniary computation& moral damages may be reco!ered if they
"ere the pro<imate result of the defendant?s "rongful act or omission.
3 may be reco!ered "hen there is death or there is malice or bad faith. (in transportation of
passengers)
3 Refer to Art. 886F and 888S
3 Ienerally& no moral damages may be a"arded "here the breach of contract is not
malicious.
c' N%i!a5 Da%a$es
3 Refer to Art. 888638889 (Ci!il Code)
3 the assessment of nominal damages is left to the discretion of the court
3 the a"ard of nominal damages is also $usti1ed in the absence of competent proof of the
speci1c amounts of actual damages su+ered.
3 cannot co3e<ist "ith actual damages
0' Te%,erate r F0erate Da%a$es
3 Art. 888: pro!ides.
may be reco!ered "hen the court 1nds that some pecuniary loss has been su+ered
but its amount can not& from the nature of the case& be pro!ided "ith certainty.
3 cannot co3e<ist "ith actual damages
e' LiD7i0ate0 Da%a$es
those agreed by the parties to a
contract& to be paid in case of
breach thereof.
4rdinarily& the court cannot
change the amount of li=uidated
damages agreed upon by the
parties. 7o"e!er& Art. 888J of the
Ci!il Code pro!ides that li=uidated
damages& "hether intended as an
indemnity or a penalty& shall be
e=uitable reduced if they "ere
ini=uitous or unconscionable.
f' E>e%,5ar# r Crrecti-e Da%a$es
Re=uisites for the a"ard of e<emplary
damages.
6. They may be imposed by "ay of
e<ample in addition to compensatory
damages& and only after the claimant?s
right to them has been established.
8. They cannot be reco!ered as a matter
of right& their determination depending
upon the amount of compensatory
damages that may be a"arded to the
claimant.
9. The act must be accompanied by bad
faith or done in "anton& fraudulent&
oppressi!e or male!olent manner.
The a"ard of e<emplary
damages in breach of contract of
carriage is sub$ect to the
pro!isions under Art. 88983889G
of the Ci!il Code.
SECTION =
C%%! Carriers &!'
SUBSECTION 1
Ge!era5 Pr-isi!s
ARTICND 6J98. Common carriers are
persons& corporations& 1rms or
associations engaged in the business of
carrying or transporting passengers or
goods or both& by land& "ater& or air& for
compensation& o+ering their ser!ices to
the public.
ARTICND 6J99. Common carriers& from
the nature of their business and for
reasons of public policy& are bound to
obser!e e<traordinary diligence in the
!igilance o!er the goods and for the
safety of the passengers transported by
them& according to all the circumstances
of each case.
-uch e<traordinary diligence in the
!igilance o!er the goods is further
e<pressed in articles 6J9:& 6J9G& and
6J:G& ,os. G& E& and J& "hile the
e<traordinary diligence for the safety of
the passengers is further set forth in
articles 6JGG and 6JGE.
SUBSECTION 2
Ei$i5a!ce O-er G0s
ARTICND 6J9:. Common carriers are responsible for the loss& destruction& or deterioration of
the goods& unless the same is due to any of the follo"ing causes only.
(6) lood& storm& earth=ua#e& lightning& or other natural disaster or calamity%
(8) Act of the public enemy in "ar& "hether international or ci!il%
(9) Act or omission of the shipper or o"ner of the goods%
(:) The character of the goods or defects in the pac#ing or in the containers%
(G) 4rder or act of competent public authority.
ARTICND 6J9G. In all cases other than those mentioned in ,os. 6& 8& 9& :& and G of the
preceding article& if the goods are lost& destroyed or deteriorated& common carriers are
presumed to ha!e been at fault or to ha!e acted negligently& unless they pro!e that they
obser!ed e<traordinary diligence as re=uired in article 6J99.
ARTICND 6J9E. The e<traordinary responsibility of the common carrier lasts from the time
the goods are unconditionally placed in the possession of& and recei!ed by the carrier for
transportation until the same are deli!ered& actually or constructi!ely& by the carrier to the
consignee& or to the person "ho has a right to recei!e them& "ithout pre$udice to the
pro!isions of article 6J9K.
ARTICND 6J9J. The common carrierZs duty to obser!e e<traordinary diligence o!er the
goods remains in full force and e+ect e!en "hen they are temporarily unloaded or stored in
transit& unless the shipper or o"ner has made use of the right of stoppage in transitu.
ARTICND 6J9K. The e<traordinary liability of the common carrier continues to be operati!e
e!en during the time the goods are stored in a "arehouse of the carrier at the place of
destination& until the consignee has been ad!ised of the arri!al of the goods and has had
reasonable opportunity thereafter to remo!e them or other"ise dispose of them.
ARTICND 6J9F. In order that the common carrier may be e<empted from responsibility& the
natural disaster must ha!e been the pro<imate and only cause of the loss. 7o"e!er& the
common carrier must e<ercise due diligence to pre!ent or minimiLe loss before& during and
after the occurrence of Hood& storm or other natural disaster in order that the common
carrier may be e<empted from liability for the loss& destruction& or deterioration of the
goods. The same duty is incumbent upon the common carrier in case of an act of the public
enemy referred to in article 6J9:& ,o. 8.
ARTICND 6J:S. If the common carrier negligently incurs in delay in transporting the goods& a
natural disaster shall not free such carrier from responsibility.
ARTICND 6J:6. If the shipper or o"ner merely contributed to the loss& destruction or
deterioration of the goods& the pro<imate cause thereof being the negligence of the
common carrier& the latter shall be liable in damages& "hich ho"e!er& shall be e=uitably
reduced.
ARTICND 6J:8. D!en if the loss& destruction& or deterioration of the goods should be caused
by the character of the goods& or the faulty nature of the pac#ing or of the containers& the
common carrier must e<ercise due diligence to forestall or lessen the loss.
ARTICND 6J:9. If through the order of public authority the goods are seiLed or destroyed&
the common carrier is not responsible& pro!ided said public authority had po"er to issue the
order.
ARTICND 6J::. A stipulation bet"een the common carrier and the shipper or o"ner limiting
the liability of the former for the loss& destruction& or deterioration of the goods to a degree
less than e<traordinary diligence shall be !alid& pro!ided it be.
(6) In "riting& signed by the shipper or o"ner%
(8) -upported by a !aluable consideration other than the ser!ice rendered by the common
carrier% and
(9) Reasonable& $ust and not contrary to public policy.
ARTICND 6J:G. Any of the follo"ing or
similar stipulations shall be considered
unreasonable& un$ust and contrary to
public policy.
(6) That the goods are transported at
the ris# of the o"ner or shipper%
(8) That the common carrier "ill not be
liable for any loss& destruction& or
deterioration of the goods%
(9) That the common carrier need not
obser!e any diligence in the custody of
the goods%
(:) That the common carrier shall
e<ercise a degree of diligence less than
that of a good father of a family& or of a
man of ordinary prudence in the
!igilance o!er the mo!ables
transported%
(G) That the common carrier shall not be
responsible for the acts or omission of
his or its employees%
(E) That the common carrierZs liability
for acts committed by thie!es& or of
robbers "ho do not act "ith gra!e or
irresistible threat& !iolence or force& is
dispensed "ith or diminished%
(J) That the common carrier is not
responsible for the loss& destruction& or
deterioration of goods on account of the
defecti!e condition of the car& !ehicle&
ship& airplane or other e=uipment used
in the contract of carriage.
ARTICND 6J:E. An agreement limiting
the common carrierZs liability may be
annulled by the shipper or o"ner if the
common carrier refused to carry the
goods unless the former agreed to such
stipulation.
ARTICND 6J:J. If the common carrier&
"ithout $ust cause& delays the
transportation of the goods or changes
the stipulated or usual route& the
contract limiting the common carrierZs
liability cannot be a!ailed of in case of
the loss& destruction& or deterioration of
the goods.
ARTICND 6J:K. An agreement limiting
the common carrierZs liability for delay
on account of stri#es or riots is !alid.
ARTICND 6J:F. A stipulation that the
common carrierZs liability is limited to
the !alue of the goods appearing in the
bill of lading& unless the shipper or
o"ner declares a greater !alue& is
binding.
ARTICND 6JGS. A contract 1<ing the sum
that may be reco!ered. by the o"ner or
shipper for the loss& destruction& or
deterioration of the goods is !alid& if it is reasonable and $ust under the circumstances& and
has been fairly and freely agreed upon.
ARTICND 6JG6. The fact that the common carrier has no competitor along the line or route&
or a part thereof& to "hich the contract refers shall be ta#en into consideration on the
=uestion of "hether or not a stipulation limiting the common carrierZs liability is reasonable&
$ust and in consonance "ith public policy.
ARTICND 6JG8. D!en "hen there is an agreement limiting the liability of the common carrier
in the !igilance o!er the goods& the common carrier is disputably presumed to ha!e been
negligent in case of their loss& destruction or deterioration.
ARTICND 6JG9. The la" of the country to "hich the goods are to be transported shall go!ern
the liability of the common carrier for their loss& destruction or deterioration.
ARTICND 6JG:. The pro!isions of articles 6J99 to 6JG9 shall apply to the passengerZs
baggage "hich is not in his personal custody or in that of his employee. As to other
baggage& the rules in articles 6FFK and 8SSS to 8SS9 concerning the responsibility of hotel3
#eepers shall be applicable.
SUBSECTION )
Safet# f Passe!$ers
ARTICND 6JGG. A common carrier is bound to carry the passengers safely as far as human
care and foresight can pro!ide& using the utmost diligence of !ery cautious persons& "ith a
due regard for all the circumstances.
ARTICND 6JGE. In case of death of or in$uries to passengers& common carriers are presumed
to ha!e been at fault or to ha!e acted negligently& unless they pro!e that they obser!ed
e<traordinary diligence as prescribed in articles 6J99 and 6JGG.
ARTICND 6JGJ. The responsibility of a common carrier for the safety of passengers as
re=uired in articles 6J99 and 6JGG cannot be dispensed "ith or lessened by stipulation& by
the posting of notices& by statements on tic#ets& or other"ise.
ARTICND 6JGK. 5hen a passenger is carried gratuitously& a stipulation limiting the common
carrierZs liability for negligence is !alid& but not for "ilful acts or gross negligence.
The reduction of fare does not $ustify any limitation of the common carrierZs liability.
ARTICND 6JGF. Common carriers are liable for the death of or in$uries to passengers through
the negligence or "ilful acts of the formerZs employees& although such employees may ha!e
acted beyond the scope of their authority or in !iolation of the orders of the common
carriers.
This liability of the common carriers does not cease upon proof that they e<ercised all the
diligence of a good father of a family in the selection and super!ision of their employees.
ARTICND 6JES. The common carrierZs responsibility prescribed in the preceding article
cannot be eliminated or limited by stipulation& by the posting of notices& by statements on
the tic#ets or other"ise.
ARTICND 6JE6. The passenger must obser!e the diligence of a good father of a family to
a!oid in$ury to himself.
ARTICND 6JE8. The contributory negligence of the passenger does not bar reco!ery of
damages for his death or in$uries& if the pro<imate cause thereof is the negligence of the
common carrier& but the amount of damages shall be e=uitably reduced.
ARTICND 6JE9. A common carrier is responsible for in$uries su+ered by a passenger on
account of the "ilful acts or negligence of other passengers or of strangers& if the common
carrierZs employees through the e<ercise of the diligence of a good father of a family could
ha!e pre!ented or stopped the act or omission.
SUBSECTION =
C%%! Pr-isi!s
ARTICND 6JE:. Bamages in cases comprised in this -ection shall be a"arded in accordance
"ith Title POIII of this )oo#& concerning Bamages. Article 88SE shall also apply to the death
of a passenger caused by the breach of
contract by a common carrier.
ARTICND 6JEG. The 'ublic -er!ice
Commission may& on its o"n motion or
on petition of any interested party& after
due hearing& cancel the certi1cate of
public con!enience granted to any
common carrier that repeatedly fails to
comply "ith his or its duty to obser!e
e<traordinary diligence as prescribed in
this -ection.
ARTICND 6JEE. In all matters not
regulated by this Code& the rights and
obligations of common carriers shall be
go!erned by the Code of Commerce and
by special la"s.